Chemical Manufacturer Implements Value Pricing to Reduce Margin Erosion
The Situation
- Privately owned leading national distributor of industrial chemicals with multiple distribution centers.
- Margins were eroding due to lack of standard practices in handling various order-to-delivery work streams including quoting, price changes, and customized pricing.
Argo’s Solution & Approach
- Developed a playbook of best practices to standardize key business processes and creating a culture of performance accountability.
- Implemented and standardized managing procedures for ordering, invoicing, and purchasing and instituting accountability to drive continuous improvement.
- Initiated and developed a formalized price book process to establish accurate list prices and reduce margin erosion.
RESULTS AT A GLANCE
$3.9M
Increased EBITDA
30%
Increased quote-to-yield rate
60%
Reduced invoicing errors